The Skulls, a Student Social Organization, Has Two Different Locations

question 36

Multiple Choice

The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows: $\begin{array}{lcl}\text { Location } & \begin{array}{r}\text { Annual } \\\text { Fixed }\end{array} & \text { Variable } \\\hline \text { Alpha Ave. } & \$ 5,000 & \$ 200 \text { per person } \\\text { Beta Blvd. } & \$ 8,000 & \$ 150 \text { per person }\end{array}$ If it is estimated that 30 persons will be living in this new chapter house, which location should the Skulls select?

• A) Alpha Ave.
• B) Beta Blvd.
• C) either Alpha Ave. or Beta Blvd.
• D) reject both Alpha Ave. and Beta Blvd.
• E) become a virtual organization

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Definitions:

Physical Changes

Alterations in a substance that do not affect its chemical composition, such as changes in shape, size, or state.

Friendships

Mutual affectionate relationships between two or more people that are usually non-romantic.

Sporting Events

Organized competitions or games in which athletes participate and are often watched by spectators, ranging from amateur to professional levels.

Honesty and Fairness

Refers to the principles of being truthful and equitable in all actions and decisions.